PCM Product Development & Launch 2

Question 1

A company uses a 'stage-gate' product development process. What is the PRIMARY purpose of each 'gate' in this system?

Accepted Answer

To review progress and decide whether to continue, modify, or kill the project

Answer

Stage-gates are decision checkpoints where management evaluates whether a project meets predefined criteria before allowing it to proceed to the next stage.

Question 2

Which concept describes the phenomenon where early adopters of a new technology product are enthusiastic, but mainstream customers fail to adopt it at the same rate?

Accepted Answer

The chasm (crossing the chasm)

Answer

Geoffrey Moore's 'crossing the chasm' describes the gap between early adopters and the early majority that many high-tech products fail to bridge.

Question 3

During new product development, a company creates a basic working version with only core features to test assumptions with real users. This is called a:

Accepted Answer

Minimum Viable Product (MVP)

Answer

An MVP is a product with just enough features to satisfy early customers and gather validated learning for future development.

Question 4

A marketer calculates that a new product's development cost is $500,000 and each unit costs $20 to produce. At a price of $70, how many units must be sold to break even?

Accepted Answer

10,000 units

Answer

Break-even = Fixed Costs ÷ (Price − Variable Cost) = $500,000 ÷ ($70 − $20) = $500,000 ÷ $50 = 10,000 units.

Question 5

In the context of product development, 'voice of the customer' (VOC) research is BEST used to:

Accepted Answer

Translate customer needs into specific product requirements

Answer

VOC research captures customer needs, preferences, and requirements that are then translated into product specifications via tools like Quality Function Deployment (QFD).

(PCM) Professional Certified Marketer Practice Test

(PCM) Professional Certified Marketer Practice Test

PCM Product Development & Launch 2